What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Indiana conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Indiana conventional loan limits are the same thing as Indiana conforming loan limits.

Indiana Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Indiana are determined by:

  • Indiana Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Indiana are set at the floor amount of $424,100 across the entire state. Metro areas in IN with a conforming limit of $424,100 include Indianapolis, Gary, South Bend and Fort Wayne.

Search all Conventional Loan Limits in Indiana:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ADAMSDECATUR, IN$424,100$543,000$656,350$815,650
ALLENFORT WAYNE, IN$424,100$543,000$656,350$815,650
BARTHOLOMEWCOLUMBUS, IN$424,100$543,000$656,350$815,650
BENTONLAFAYETTE-WEST LAFAYETTE, IN$424,100$543,000$656,350$815,650
BLACKFORDNON-METRO$424,100$543,000$656,350$815,650
BOONEINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
BROWNINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
CARROLLLAFAYETTE-WEST LAFAYETTE, IN$424,100$543,000$656,350$815,650
CASSLOGANSPORT, IN$424,100$543,000$656,350$815,650
CLARKLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
CLAYTERRE HAUTE, IN$424,100$543,000$656,350$815,650
CLINTONFRANKFORT, IN$424,100$543,000$656,350$815,650
CRAWFORDNON-METRO$424,100$543,000$656,350$815,650
DAVIESSWASHINGTON, IN$424,100$543,000$656,350$815,650
DE KALBAUBURN, IN$424,100$543,000$656,350$815,650
DEARBORNCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
DECATURGREENSBURG, IN$424,100$543,000$656,350$815,650
DELAWAREMUNCIE, IN$424,100$543,000$656,350$815,650
DUBOISJASPER, IN$424,100$543,000$656,350$815,650
ELKHARTELKHART-GOSHEN, IN$424,100$543,000$656,350$815,650
FAYETTECONNERSVILLE, IN$424,100$543,000$656,350$815,650
FLOYDLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
FOUNTAINNON-METRO$424,100$543,000$656,350$815,650
FRANKLINNON-METRO$424,100$543,000$656,350$815,650
FULTONNON-METRO$424,100$543,000$656,350$815,650
GIBSONNON-METRO$424,100$543,000$656,350$815,650
GRANTMARION, IN$424,100$543,000$656,350$815,650
GREENENON-METRO$424,100$543,000$656,350$815,650
HAMILTONINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
HANCOCKINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
HARRISONLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
HENDRICKSINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
HENRYNEW CASTLE, IN$424,100$543,000$656,350$815,650
HOWARDKOKOMO, IN$424,100$543,000$656,350$815,650
HUNTINGTONHUNTINGTON, IN$424,100$543,000$656,350$815,650
JACKSONSEYMOUR, IN$424,100$543,000$656,350$815,650
JASPERCHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$424,100$543,000$656,350$815,650
JAYNON-METRO$424,100$543,000$656,350$815,650
JEFFERSONMADISON, IN$424,100$543,000$656,350$815,650
JENNINGSNORTH VERNON, IN$424,100$543,000$656,350$815,650
JOHNSONINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
KNOXVINCENNES, IN$424,100$543,000$656,350$815,650
KOSCIUSKOWARSAW, IN$424,100$543,000$656,350$815,650
LA PORTEMICHIGAN CITY-LA PORTE, IN$424,100$543,000$656,350$815,650
LAGRANGENON-METRO$424,100$543,000$656,350$815,650
LAKECHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$424,100$543,000$656,350$815,650
LAWRENCEBEDFORD, IN$424,100$543,000$656,350$815,650
MADISONINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
MARIONINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
MARSHALLPLYMOUTH, IN$424,100$543,000$656,350$815,650
MARTINNON-METRO$424,100$543,000$656,350$815,650
MIAMIPERU, IN$424,100$543,000$656,350$815,650
MONROEBLOOMINGTON, IN$424,100$543,000$656,350$815,650
MONTGOMERYCRAWFORDSVILLE, IN$424,100$543,000$656,350$815,650
MORGANINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
NEWTONCHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$424,100$543,000$656,350$815,650
NOBLEKENDALLVILLE, IN$424,100$543,000$656,350$815,650
OHIOCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
ORANGENON-METRO$424,100$543,000$656,350$815,650
OWENBLOOMINGTON, IN$424,100$543,000$656,350$815,650
PARKENON-METRO$424,100$543,000$656,350$815,650
PERRYNON-METRO$424,100$543,000$656,350$815,650
PIKEJASPER, IN$424,100$543,000$656,350$815,650
PORTERCHICAGO-NAPERVILLE-ELGIN, IL-IN-WI$424,100$543,000$656,350$815,650
POSEYEVANSVILLE, IN-KY$424,100$543,000$656,350$815,650
PULASKINON-METRO$424,100$543,000$656,350$815,650
PUTNAMINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
RANDOLPHNON-METRO$424,100$543,000$656,350$815,650
RIPLEYNON-METRO$424,100$543,000$656,350$815,650
RUSHNON-METRO$424,100$543,000$656,350$815,650
SCOTTLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
SHELBYINDIANAPOLIS-CARMEL-ANDERSON, IN$424,100$543,000$656,350$815,650
SPENCERNON-METRO$424,100$543,000$656,350$815,650
ST. JOSEPHSOUTH BEND-MISHAWAKA, IN-MI$424,100$543,000$656,350$815,650
STARKENON-METRO$424,100$543,000$656,350$815,650
STEUBENANGOLA, IN$424,100$543,000$656,350$815,650
SULLIVANTERRE HAUTE, IN$424,100$543,000$656,350$815,650
SWITZERLANDNON-METRO$424,100$543,000$656,350$815,650
TIPPECANOELAFAYETTE-WEST LAFAYETTE, IN$424,100$543,000$656,350$815,650
TIPTONNON-METRO$424,100$543,000$656,350$815,650
UNIONCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
VANDERBURGHEVANSVILLE, IN-KY$424,100$543,000$656,350$815,650
VERMILLIONTERRE HAUTE, IN$424,100$543,000$656,350$815,650
VIGOTERRE HAUTE, IN$424,100$543,000$656,350$815,650
WABASHWABASH, IN$424,100$543,000$656,350$815,650
WARRENNON-METRO$424,100$543,000$656,350$815,650
WARRICKEVANSVILLE, IN-KY$424,100$543,000$656,350$815,650
WASHINGTONLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
WAYNERICHMOND, IN$424,100$543,000$656,350$815,650
WELLSFORT WAYNE, IN$424,100$543,000$656,350$815,650
WHITENON-METRO$424,100$543,000$656,350$815,650
WHITLEYFORT WAYNE, IN$424,100$543,000$656,350$815,650

Indiana conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Indiana?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Indiana, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Indiana Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

IN Conforming Loan RequirementsConventional mortgage guidelines allow you to purchase
warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Indiana?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Indiana:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Indiana, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Indiana Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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